Stocks sink as interest rate hike worries rattle tech amid nonstop AI spending

Article excerpt

Stock markets plummeted after a stronger-than-expected jobs report signaled the Federal Reserve may raise interest rates again, hammering tech stocks already under pressure from relentless AI spending. The surprisingly robust employment data spooked investors who had hoped the central bank would pause its rate-hiking cycle. Technology companies, which are most vulnerable to rising borrowing costs, bore the brunt of the selloff. The jobs report's strength suggests the economy remains resilient, a mixed signal that supports rate hikes even as companies race to finance AI infrastructure.